Corunna Downs

Significant drilling success at the Corunna Downs project has resulted in Mineral Resources of 65.4Mt (42.1Mt Indicated and 23.3Mt Inferred) comprised of:

  • Runway Mineral Resources of 11.4Mt at 57.3% Fe
  • Shark Gully Mineral Resources of 9.2Mt at 57.6% Fe
  • Split Rock Mineral Resources of 25.4Mt at 57.1% Fe
  • Razorback Mineral Resources of 5.9Mt at 57.1% Fe
  • Glen Herring Prospect Mineral Resources of 13.5Mt at 57.3% Fe

Corunna Downs’ proximity to Port Hedland and Atlas’ existing North Pilbara portfolio such as the nearby Mt Webber Project (approximately 35kms to the west), presents an opportunity to contribute to Atlas’ existing trucking model.

A Pre-Feasibility Study (PFS) was completed in late 2015. Following completion of the PFS, a maiden Ore Reserve at Corunna Downs has been estimated at 21.1Mt @ 57.0% Fe

A -program of RC drilling for resource definition, Diamond Drilling for geotechnical and metallurgy and Hydrogeology was completed in support of the PFS.
 
Mining
Mining at Corunna Downs would be undertaken by a proven mining contractor, managed by Atlas to mine the deposit by open pit method using conventional drill and blast, truck and excavator combination. The mining strategy contemplated by the PFS is based on 2 months of development and pre-strip prior to ramping up to full production of up to 4.0Mtpa over 4 months.

The Runway pit is closest to the ROM pad with low strip ratio and would be mined first followed by Shark Gully and then Split Rock.  Split Rock is the largest of all pits within the project area and would be the main source of ore supply for the majority of the mine life. Ore from the pits would be hauled to the ROM pad for blending to the crusher. The finished product would then be stockpiled and transported to the Utah stockyard at Port Hedland by road.

Operating Cost Estimate
The operating philosophy adopted in the PFS is as per Atlas’ current operations whereby mining, processing and haulage to port is contracted out.  C1 costs estimated in the PFS are in the range of $37 - $42/wmt.

Capital Cost Estimate
The initial capital expenditure for the Corunna Downs Project, based on the production of 4Mtpa, has been estimated under the PFS to be in the range of $35M - $40M. The capital cost estimate for the Corunna Downs project is based on contractor estimates for mining, processing, related infrastructure, and product logistics.

Metallurgy
The metallurgical test work demonstrates that the Project produces good metallurgical properties including low abrasiveness and a high proportion of lump (57%).

Process Plant
The selected plant is a fixed dry crushing and screening plant, typical of those at other Atlas operations. The plant would produce 4Mtpa and would be built, owned, operated and maintained by a contractor.
The Plant, ROM and Product Yard would be located at the base of the Corunna Range. The location of the ROM, Plant and Stockyard Layout is illustrated below.

Haulage
4Mtpa of finished product would be expected to be hauled from the mine to Utah Point using road trains by a haulage contractor and would adopt the same approach as at Atlas’ other mines.
 

 

Corunna Downs Mineral Resource as at November 2015, reported above a 50% Fe cut-off

*CaFe% is calcined Fe calculated by Atlas using the following formula (Fe%/(100-LOI%))*100.
**Tonnes rounded according to Mineral Resource classification, small discrepancies in tonnages may occur due to rounding.
***Iron Ore Mineral Resource tonnes are reported on a dry weight basis


Corunna Downs Project Ore Reserve as at November 2015


Competent Person’s Statements

Mineral Resource and Ore Reserves - Compliance with the JORC code assessment criteria

This Mineral Resource and Ore Reserve statement has been compiled in accordance with the guidelines defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code - 2012 Edition).
 

Ore Reserve Estimation – Corunna Downs

The information in this report that relates to Ore Reserve estimations for the Corunna Downs deposits is based on information compiled under the guidance of and audited by Mr Srinivasa Rao Gadi, who is a member of the Australasian Institute of Mining and Metallurgy. Srinivasa Rao Gadi is a full time employee and shareholder of Atlas. Srinivasa Rao Gadi has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Srinivasa Rao Gadi consents to the inclusion in the report of the matters based on his information in the form and context in which they appear.
 

Geological Data, Interpretation and Resource Estimation – Corunna Downs

The information in this report that relates to Geological Data, Interpretation and Mineral Resource estimations for the Corunna Downs deposits is based on information compiled by Mr Leigh Slomp who is a member of the Australasian Institute of Mining and Metallurgy. Leigh Slomp is a full time employee and shareholder of Atlas. Leigh Slomp has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Leigh Slomp consents to the inclusion in this report of the matters based on his information in the form and context in which they appear.


To read more on the Corunna Downs project please see the separate ASX announcements:

22 October 2015 – Pre-feasibility Study Underway for Corunna Downs
28 May 2015 – North Pilbara Mineral Resource Update
 23 December 2015 - Corunna Downs PFS Results